Tesla’s CEO, Elon Musk, on Wednesday tweeted that the electric car company, Tesla, would be accepting the digital currency, bitcoin, as a form of payment.
Musk mentioned that the company is already running an internal and open source software that would handle bitcoin payment.
The software would control the Bitcoin nodes, which processes bitcoin transactions.
The company also plans on retaining Bitcoin paid to it.
“Bitcoin paid to Tesla will be retained as Bitcoin, not converted to fiat currency”, said Musk in his tweet.
He also mentioned that the company would allow a refund policy.
Although, the refund would come in the exact amount as the Tesla paid; or it could be changed to the dollar amount of the car.
However, the facility is only available in the US.
Musk disclosed that it would be released to other countries soon.
The equivalent of a $100 deposit in bitcoin can now be used to purchase a Tesla now in the US.
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What the announcement means for Bitcoin
Since the announcement, there has been a sudden rise in the demand for bitcoin, leading to a surge in the price of the currency.
More people are familiarising themself with the digital currency, in which the more the demand, the higher the price of the coin.
For Bitcoin, it would mean that the currency is progressing to the future as many world influencers had predicted.
Although not just bitcoin but cryptocurrency as a form of currency.
Also, the development would be great news for those who have already invested in bitcoin. Once the price goes up, their investment also goes up.
However, bitcoin’s value is volatile as it goes up and down, which would mean that bitcoin’s amount for a car would keep changing.
In a situation where Tesla needs to refund a buyer, the person might be on a losing end.
According to the policy, the car would be refunded back in the exact amount paid, and if at that period the price of bitcoin goes up, the person would be on the losing end.
While for Tesla, since it decides to still retain bitcoin after being paid, it would be on the gaining end.
Also, Tesla retaining the money in its crypto form would mean the government won’t control it and won’t have to pay tax.
Many are not surprised at the outburst of the event.
Musk, a bitcoin enthusiast, has frequently been tweeting about cryptocurrency.
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